If you want to have a high quality of life, you should consider your financial plan. A financial plan will let you dictate what type of lifestyle you can enjoy and get you on the right track for your financial freedoms. This means that you must plan your finances well for you to achieve all your goals and desires.
As a high net-worth individual, you probably have multiple financial and investment goals. If you are concerned about achieving those goals, you probably have questions about your finances, such as diversifying your $10 million investment portfolio or increasing your income.
Your goals can range from buying a home in your dream location, investing and saving for your family, or even taking a vacation in exotic locations. But how can you achieve this goal while protecting your wealth? This is where a financial planner comes in handy.
In this article, we look at why financial planning is important and how you can go about it. Topics like budgeting, taxes, investments, insurance, and so many others that are vital for a high net worth individual to know will be considered. The article was created by Pillar Wealth Management LLC, a wealth management firm that caters
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to the needs of affluent clients who have between $5 million and $500 million in liquid assets and are looking to protect and increase their wealth. If you would love to get professional advice from experienced financial experts, you can book a free, no-obligation session with Chris Snyder and Hutch Ahoo, the co-founders of the firm.
Who are the Best Financial Planners?
As a high net worth or ultra-high net worth individual with a considerable investment portfolio, you want to get the best possible financial planner for your investments. But before we talk about how to find the best financial planner, let us look at who a financial planner is, and what they do.
A financial planner is another finance professional that can move you closer to achieving your financial goals. They do this by taking your future goals and expanding on them to create a comprehensive financial plan. The financial planner takes a look at your lifestyle, your expenses, and what you seek to achieve financially.
They will then use the information to draft out a comprehensive plan for your portfolio. As simple as it may seem, the process is quite complex, especially when managing the assets of extremely high net worth and ultra-high net worth individuals.
If you would like to receive information about improving your investment portfolio, get our free guide, Improving Portfolio Performance: The Shifts Multi-Millionaires Must Make to Achieve Financial Security and Serenity. This guide was prepared by Pillar Wealth Management, a wealth management company that caters to high net worth and ultra-high net worth clients with $5 million to $50 million in assets.
When creating a financial plan, your financial planner will consider several factors, such as the time frame of the goals. There are some goals that you will want to achieve in the short-term while others are far off.
If your financial planner knows these goals, then they can help you achieve them. If you need professional advice with setting financial goals, then schedule a free non-obligatory consultation call with the founders of Pillar Wealth Management LLC, Chris Snyder, and Hutch Ashoo.
To help you accomplish your financial goals, your financial planner will have you take a survey. The purpose of this survey is to help the planner get a clear view of your current financial situation, as well as understand your financial goals and investment objectives.
The survey also tells your financial advisor what your risk profile is, so the plan considers that too. Your risk profile is what helps your financial planner determine how your assets should be invested to help you achieve your goals.
The risk profile that you fit into depends on the stage of life you are, as well as your risk appetite. Your financial planner must have all the relevant information that they need so that they can help you create the best kind of plan.
Once your financial planner understands your goals, they will then determine how realistic the goals are. The financial planner may use several financial management tools such as a capital needs analysis to see how you can raise the capital necessary to reach your goals. To achieve this, they will cross-check your financial budget to determine your spending, compare your assets and liabilities to determine the cost of meeting your goals.
Now is a great time to let us look at where you can find the best financial planner for your investment portfolio.
Where are the Best Financial Planners?
If you do a quick google search for “best financial planners near me,” you can get a lot of results. You will see a lot of financial professionals that offer financial advisory services. But where can you find the best ones?
To find the best financial planner, you need to know the various types of financial professionals who offer financial advice and can draw up a financial plan. Understanding the types of professionals that offer financial advice and create financial plans will help you identify where the best financial planners are.
The first type of professional we will cover that can give financial advice is a Robo-advisor. However, a Robo-advisor is not a human being. A Robo-advisor or Robo-investor is a computer software that manages your investment portfolio according to an algorithm. To get started, you are given a questionnaire to fill.
This questionnaire will ask various questions about your financial plans, your goals for your investments, how you want your portfolio to be managed, and many other questions. The Robo-advisor prepares an investment plan for you based on the answers you give in the questionnaire.
This investment plan will take into consideration your reasons for investing, the timeframe you plan to invest for, and your risk appetite to allocate your assets. The Robo-advisor automatically manages your assets based on the algorithm. This means that you do not get to have hands-on participation with your investments.
Robo-advisors are not for everyone, especially those with complex financial situations, like high-net-worth and ultra-high-net-worth individuals. For example, if you have a lot of goals, the algorithm might not be sophisticated enough to handle them. Also, if you need some advice or want someone to talk to, you may not have the opportunity because an algorithm handles your trading for you.
If you want to know how your wealth and estate can be better managed, request for your free copy of our hardcover book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates: Strategies for Families Worth $25 Million to $500 Million. Our team at Pillar Wealth Management, LLC. will send this to your home for free.
The next kind of financial professional that you can use is a financial planner. A financial planner is exactly what it sounds like, a professional that helps you plan your finances and investment portfolio. We have already described who a financial planner is and what they do, but there are some disadvantages to using only a financial planner.
The major challenge of using only a financial planner is with the implementation of the plan. A financial plan for a high net worth individual with $5 million to $500 million in liquid assets is likely going to be extremely complex, especially if the investment portfolio is worth 10 million or higher.
Many financial planners do not have the best knowledge on selecting assets to invest in; neither can they help you manage your portfolio by selling or buying bonds stocks or other securities. The result is that although the financial planner can prepare an adequate financial plan, they did not have the authority or know-how to implement the plan. And without proper implementation, you might not achieve your investment goals.
This is where an investment or a stockbroker comes in. Investment brokers suggest and purchase investment vehicles such as stocks, bonds, and securities to meet your financial goals. Unlike other financial professionals who are paid a fixed fee, an investment broker is usually paid on commission, which means that the broker ends money anytime you purchase stocks, bonds, or other securities from them.
Therefore, to effectively manage your investments as a member of the top 1%, you will need at least the services of a financial planner and an investment broker. However, hiring two different people can prove problematic, especially if the two parties do not work well together.
This is where a financial advisor or wealth manager comes in. They combine the skill sets of both a financial planner and an investment broker in addition to providing other services specifically tailored towards affluent clients.
A financial advisor is skilled in fields such as estate planning, tax planning, insurance, and of course, investments. If you need professional advice in any of these fields, you can schedule a free consultation call with Chris Snyder and Hutch Ashoo, the co-founder of pillar Wealth Management LLC, who are experienced in providing financial advice to affluent clients. With over three decades of experience, you can rest assured you are getting the proper advice you need.
How to Find the Right Financial Planner
When you are looking for financial advice or help managing your investment portfolio, it is important to find the right financial planner. More importantly, you need to find a financial planner that is right for you. As a high net-worth individual with $5 million to $500 million in liquid assets, your financial needs will differ quite significantly from that of an average middle-class individual.
However, most financial planners are trained and experienced in managing wealth for members of the middle class. This means that they are not right for you, because they do not fully understand the complexities of managing a huge investment portfolio. The right financial planner for you, therefore, is a financial advisor or wealth manager that has considerable experience managing wealth for high net worth or ultra-high net worth individuals.
If you need more information about how to choose a financial advisor, our team at Pillar Wealth Management, LLC, created a valuable resource for you. Receive your copy of The Ultimate Guide to Choosing the Best Financial Advisor: For Investors with $5 Million to $500 Million in Liquid Assets.
Another reason why you need a financial advisor is because of something called fiduciary duty. Fiduciary duty means that your wealth manager is bound by law to always act in your best interests. This is not the case for a stockbroker or any other financial professional, while they are expected to, it is in no means compelled by law.
For example, a stockbroker can suggest investment security to you for purchase, not because it is the best in that asset class but because it yields a higher commission for them. Unfortunately, if the asset that was suggested moves your portfolio in the direction of your goal, it is perfectly legal, even if they were better investment options.
This is not the case with a financial advisor as they are bound by law to provide you the best investment advice within the limit of their ability. You can expect your financial advisor to give you the best possible investment advice to meet your goals.
Why at Pillar Wealth Management – we consider ourselves one of the Top Ultra-High Net Worth Management Firms
When selecting a financial planner or wealth advisor, you should consider the years of experience that the firm has had with providing financial advice to affluent clients. Experience in providing expert financial advice is just as important as any certification that the firm may have.
When it comes to managing the assets of high net worth individuals in the US, at Pillar Wealth Management LLC we feel we are one of the top wealth management firms. If you would like to take advantage of this wealth of experience, you can schedule a free consultation with Chris Snyder and Hutch Ashoo, the co-founders at Pillar Wealth Management LLC.
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